Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-19687 | |
Entity Registrant Name | Ascent Industries Co. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 57-0426694 | |
Entity Address, Address Line One | 1400 16th Street, | |
Entity Address, Address Line Two | Suite 270, | |
Entity Address, City or Town | Oak Brook, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60523 | |
City Area Code | (630) | |
Local Phone Number | 884-9181 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | ACNT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Smaller Reporting Company | true | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 10,172,945 | |
Entity Central Index Key | 0000095953 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Filer Category | Accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 421 | $ 1,441 |
Accounts receivable, net of allowance for credit losses of $975 and $1,250, respectively | 46,779 | 45,120 |
Inventories, net | 99,792 | 114,452 |
Prepaid expenses and other current assets | 11,400 | 8,982 |
Assets held for sale | 0 | 380 |
Total current assets | 158,392 | 170,375 |
Property, plant and equipment, net | 41,445 | 42,346 |
Right-of-use assets, operating leases, net | 28,871 | 29,224 |
Goodwill | 11,389 | 11,389 |
Intangible assets, net | 9,991 | 10,387 |
Deferred income taxes | 1,000 | 1,353 |
Deferred charges, net | 178 | 203 |
Other non-current assets, net | 3,766 | 3,766 |
Total assets | 255,032 | 269,043 |
Current liabilities: | ||
Accounts payable | 25,783 | 22,731 |
Accrued expenses and other current liabilities | 8,040 | 6,560 |
Current portion of note payable | 98 | 387 |
Current portion of long-term debt | 2,464 | 2,464 |
Current portion of operating lease liabilities | 1,077 | 1,056 |
Current portion of finance lease liabilities | 273 | 280 |
Total current liabilities | 37,735 | 33,478 |
Long-term debt | 56,189 | 69,085 |
Long-term portion of operating lease liabilities | 30,628 | 30,911 |
Long-term portion of finance lease liabilities | 1,378 | 1,242 |
Other long-term liabilities | 58 | 68 |
Total non-current liabilities | 88,253 | 101,306 |
Commitments and contingencies – See Note 12 | ||
Shareholders' equity: | ||
Common stock, par value $1 per share; 24,000,000 shares authorized; 11,085,103 and 10,172,265 shares issued and outstanding, respectively | 11,085 | 11,085 |
Capital in excess of par value | 46,903 | 47,021 |
Retained earnings | 79,947 | 85,146 |
Shareholders' equity before treasury stock | 137,935 | 143,252 |
Less: cost of common stock in treasury - 912,838 and 924,504 shares, respectively | (8,891) | (8,993) |
Total shareholders' equity | 129,044 | 134,259 |
Total liabilities and shareholders' equity | $ 255,032 | $ 269,043 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 975 | $ 1,250 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 24,000,000 | 24,000,000 |
Common stock, shares issued (in shares) | 11,085,103 | 10,172,265 |
Common stock, shares outstanding (in shares) | 11,085,103 | 10,172,265 |
Common stock in treasury, at cost (in shares) | 912,838 | 924,504 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 82,452 | $ 116,218 |
Cost of sales | 78,160 | 93,722 |
Gross profit | 4,292 | 22,496 |
Selling, general and administrative | 9,553 | 8,646 |
Acquisition costs and other | 333 | 531 |
Earn-out adjustments | 0 | 102 |
Operating income (loss) | (5,594) | 13,217 |
Other expense (income) | ||
Interest expense | 1,107 | 403 |
Other, net | (95) | (35) |
Income (loss) before income taxes | (6,606) | 12,849 |
Income tax provision (benefit) | (1,407) | 2,589 |
Net income (loss) | $ (5,199) | $ 10,260 |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ (0.51) | $ 1 |
Diluted (in dollars per share) | $ (0.51) | $ 0.99 |
Weighted average shares outstanding: | ||
Basic (in shares) | 10,148 | 10,209 |
Dilutive effect from stock options and grants (in shares) | 0 | 111 |
Diluted (in shares) | 10,148 | 10,320 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net income (loss) | $ (5,199) | $ 10,260 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation expense | 1,991 | 2,116 |
Amortization expense | 396 | 721 |
Amortization of debt issuance costs | 25 | 25 |
Deferred income taxes | 353 | 428 |
Earn-out adjustments | 0 | 102 |
Payments on earn-out liabilities in excess of acquisition date fair value | 0 | (372) |
(Reduction of) provision for losses on accounts receivable | (275) | 240 |
Provision for losses on inventories | 1,178 | 496 |
Loss (gain) on disposal of property, plant and equipment | 182 | (5) |
Non-cash lease expense | 91 | 107 |
Issuance of treasury stock for director fees | 0 | 254 |
Stock-based compensation expense | 311 | 132 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,384) | (17,933) |
Inventories | 13,680 | (9,302) |
Other assets and liabilities | 352 | (27) |
Accounts payable | 2,786 | 11,950 |
Accrued expenses | 1,480 | (959) |
Accrued income taxes | (2,577) | 2,161 |
Net cash provided by operating activities | 13,390 | 394 |
Investing activities | ||
Purchases of property, plant and equipment | (824) | (1,117) |
Proceeds from disposal of property, plant and equipment | 0 | 5 |
Net cash used in investing activities | (824) | (1,112) |
Financing activities | ||
Borrowings from long-term debt | 67,488 | 122,068 |
Proceeds from exercise of stock options | 0 | 118 |
Payments on long-term debt | (80,384) | (121,386) |
Payments on note payable | (289) | 0 |
Principal payments on finance lease obligations | (74) | (62) |
Payments on earn-out liabilities | 0 | (800) |
Repurchase of common stock | (327) | 0 |
Net cash used in financing activities | (13,586) | (62) |
Decrease in cash and cash equivalents | (1,020) | (780) |
Cash and cash equivalents at beginning of period | 1,441 | 2,021 |
Cash and cash equivalents at end of period | 421 | 1,241 |
Supplemental Disclosure of Cash Flow Information | ||
Interest | 1,061 | 317 |
Income taxes | 817 | 2 |
Noncash Investing Activities: | ||
Capital expenditures, not yet paid | $ 266 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2021 | 11,085,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 111,590 | $ 11,085 | $ 46,058 | $ 63,080 | $ (8,633) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 918,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 10,260 | 10,260 | |||
Issuance of shares of common stock from the treasury | $ 254 | (151) | $ 405 | ||
Issuance of shares of common stock from the treasury (in shares) | (43,082) | (43,000) | |||
Exercise of stock options for shares, net | $ 118 | (11) | $ 129 | ||
Exercise of stock options for shares, net (in shares) | (14,000) | ||||
Stock-based compensation | 132 | 132 | |||
Ending balance (in shares) at Mar. 31, 2022 | 11,085,000 | ||||
Ending balance at Mar. 31, 2022 | 122,354 | $ 11,085 | 46,028 | 73,340 | $ (8,099) |
Treasury stock, ending balance (in shares) at Mar. 31, 2022 | 861,000 | ||||
Beginning balance (in shares) at Dec. 31, 2022 | 11,085,000 | ||||
Beginning balance at Dec. 31, 2022 | $ 134,259 | $ 11,085 | 47,021 | 85,146 | $ (8,993) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 924,504 | 924,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ (5,199) | (5,199) | |||
Issuance of shares of common stock from the treasury | $ 0 | (429) | $ 429 | ||
Issuance of shares of common stock from the treasury (in shares) | (43,479) | (43,000) | |||
Stock-based compensation | $ 311 | 311 | |||
Repurchase of shares of common stock (in shares) | 32,000 | ||||
Repurchase of shares of common stock | (327) | $ (327) | |||
Ending balance (in shares) at Mar. 31, 2023 | 11,085,000 | ||||
Ending balance at Mar. 31, 2023 | $ 129,044 | $ 11,085 | $ 46,903 | $ 79,947 | $ (8,891) |
Treasury stock, ending balance (in shares) at Mar. 31, 2023 | 912,838 | 913,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2022 shares | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock from the treasury (in shares) | 43,082 |
Number of shares repurchased (in shares) | 0 |
Options exercised (in shares) | 13,784 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements and notes to the unaudited condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The unaudited condensed consolidated financial statements, in the opinion of management, contain all normal recurring adjustments necessary to present a fair statement of the condensed consolidated balance sheets as of March 31, 2023, the statements of income and shareholders’ equity for the three months ended March 31, 2023 and 2022, and the statements of cash flows for the three months ended March 31, 2023 and 2022. The December 31, 2022 condensed consolidated balance sheet was derived from the audited financial statements. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (the "Annual Report"). The financial results for the interim periods may not be indicative of the financial results for the entire year as our future assessment of our current expectations could result in material impacts to our consolidated financial statements in future reporting periods. Use of Estimates The preparation of the Company's financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses, and related disclosures of contingent assets and liabilities. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment; intangible assets; the fair value of assets or liabilities acquired in a business combination; valuation allowances for receivables, inventories and deferred income tax assets and liabilities; environmental liabilities; liabilities for potential tax deficiencies; and, potential litigation claims and settlements. The Company bases these estimates on historical results and various other assumptions believed to be reasonable, all of which form the basis for making estimates concerning the carrying value of assets and liabilities that are readily available from other sources. Actual results may differ from these estimates. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation, including the reclassification of immaterial revenue and expenses related to the Palmer business within the Company's reportable segments. Accounting Pronouncements Recently Adopted On March 31, 2023, the Company adopted ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting." |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue RecognitionRevenue is generated primarily from contracts to produce, ship and deliver steel and specialty chemical products. Revenues are recognized when control of the promised goods or services is transferred to our customers upon shipment, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company's revenues are derived from contracts with customers where performance obligations are satisfied at a point-in-time or over-time. For certain contracts under which the Company produces product with no alternative use and for which the Company has an enforceable right to payment during the production cycle, product in which the material is customer owned or in which the customer simultaneously consumes the benefits throughout the production cycle, progress toward satisfying the performance obligation is measured using an output method of units produced. Certain customer arrangements consist of bill-and-hold characteristics under which transfer of control has been met (including the passing of title and significant risk and reward of ownership to the customers). Therefore, the customers can direct the use of the bill-and-hold inventory while we retain physical possession of the product until it is shipped to a customer at a point in time in the future. Sales tax and other taxes we collect with revenue-producing activities are excluded from revenue. Shipping costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Costs related to obtaining sales contracts are incidental and are expensed when incurred. Because customers are invoiced at the time title transfers and the Company’s right to consideration is unconditional at that time, the Company does not maintain contract asset balances. Additionally, the Company does not maintain material contract liability balances, as performance obligations for substantially all contracts are satisfied prior to customer payment for product. The Company offers industry standard payment terms. The following table presents the Company's revenues, disaggregated by product group: Three Months Ended March 31, (in thousands) 2023 2022 Fiberglass and steel liquid storage tanks and separation equipment $ 50 $ 114 Heavy wall seamless carbon steel pipe and tube 12,387 12,373 Stainless steel pipe and tube 44,460 62,239 Galvanized pipe and tube 1,806 13,771 Specialty Chemicals 23,749 27,721 Net sales $ 82,452 $ 116,218 Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. The following table represents the Company's revenue recognized at a point- in-time and over-time: Three Months Ended March 31, (in thousands) 2023 2022 Point-in-time $ 77,029 $ 109,003 Over-time $ 5,423 $ 7,215 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 - Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date. Level 2 - Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using model-based techniques, including option pricing models, discounted cash flow models, probability weighted models, and Monte Carlo simulations. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis During the three months ended March 31, 2023, the Company's only significant measurements of assets or liabilities at fair value on a non-recurring basis subsequent to their initial recognition were certain long-lived assets. Long-lived assets The Company reviews the carrying amounts of long-lived assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company assesses performance quarterly against historical patterns, projections of future profitability, and whether it is more likely than not that the assets will be disposed of significantly prior to the end of their estimated useful life for evidence of possible impairment. An impairment loss is recognized when the carrying amount of the asset (disposal) group is not recoverable and exceeds fair value. The Company estimates the fair values of assets subject to long-lived asset impairment based on the Company's own judgments about the assumptions market participants would use in pricing the assets and observable market data, when available. The Company classifies these fair value measurements as Level 3. During the fourth quarter of 2022, the Company began a strategic reassessment of certain operations to drive an increased focus on its core operations and to continue to improve overall performance and operating profitability. As a result of this reassessment, management and the Board of Directors decided to pursue an exit of the Company's galvanized pipe and tube operations at its Munhall facility. During the first quarter of 2023, it was determined that a continued change in the use of the assets of the Munhall facility had occurred before the end of their previous useful lives, and therefore, had experienced a triggering event and were evaluated for recoverability. Based on this evaluation of the Munhall assets, it was determined the assets were recoverable and no impairment was recorded. Assets Held for Sale On February 17, 2021, the Board of Directors authorized the permanent cessation of operations at Palmer of Texas Tanks, Inc. ("Palmer") and the subleasing of the Palmer facility. As of December 31, 2021, the Company permanently ceased operations at the Palmer facility and determined that the remaining asset group met the criteria to be classified as held for sale, and therefore classified the related assets as held for sale on the consolidated balance sheets. The Company determined that the exit from this business did not represent a strategic shift that had a major effect on its consolidated results of operations, and therefore this business was not classified as discontinued operations. As of March 31, 2023, the Company has disposed of all remaining assets classified as held for sale at the Palmer facility. The Palmer assets held for sale at December 31, 2022 were classified as Level 2 fair value measurements. The assets classified as held for sale as are as follows: (in thousands) March 31, 2023 December 31, 2022 Inventory, net $ — $ 198 Property, plant and equipment, net — 182 Assets held for sale $ — $ 380 The Company remains obligated under the terms of the leases for the rent and other costs that may be associated with the lease of the facility through 2036. During the fourth quarter of 2022, the Company entered into an amended sublease agreement with a third party to sublease the entirety of the Palmer facility. The sublease agreement amends the previous sublease agreement entered into in the fourth quarter of 2021 and continues through the remaining term of the Master Lease Agreement. The sublease will expire on September 30, 2036, unless terminated in accordance with the amended sublease agreement. The sublease provides for an annual base rent of approximately $0.4 million, which increases on an annual basis by 2.0%. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space. The sublease includes an initial security deposit of $0.1 million. Fair Value of Financial Instruments The fair values of cash and cash equivalents, accounts receivable, accounts payable and the Company's note payable approximated their carrying value because of the short-term nature of these instruments. The Company's revolving line of credit and long-term debt, which is based on a variable interest rate, are also reflected in the financial statements at carrying value which approximate fair values as of March 31, 2023. The carrying amount of cash and cash equivalents are considered Level 1 measurements. The carrying amounts of accounts receivable, accounts payable, note payable, revolving line of credit and long-term debt are considered Level 2 measurements. See Note 7 for further information on the Company's debt. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by either specific identification or weighted average methods. The components of inventories are as follows: (in thousands) March 31, 2023 December 31, 2022 Raw materials $ 49,862 $ 57,475 Work-in-process 22,786 23,136 Finished goods 32,030 37,549 104,678 118,160 Less: inventory reserves (4,886) (3,708) Inventories, net $ 99,792 $ 114,452 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following: (in thousands) March 31, 2023 December 31, 2022 Land $ 723 $ 723 Leasehold improvements 4,203 4,114 Buildings 1,534 1,534 Machinery, fixtures and equipment 114,780 113,413 Construction-in-progress 2,866 3,270 124,106 123,054 Less: accumulated depreciation and amortization (82,661) (80,708) Property, plant and equipment, net $ 41,445 $ 42,346 The following table sets forth depreciation expense related to property, plant and equipment: Three Months Ended March 31, (in thousands) 2023 2022 Cost of sales $ 1,917 $ 2,054 Selling, general and administrative 74 62 Total depreciation $ 1,991 $ 2,116 |
Goodwill, Intangible Assets and
Goodwill, Intangible Assets and Deferred Charges | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangible Assets and Deferred Charges | Goodwill, Intangible Assets and Deferred Charges Goodwill The Company's goodwill balance of $11.4 million as of March 31, 2023 and December 31, 2022, respectively, was attributable to the Specialty Chemicals segment. Intangible Assets Intangible assets represent the fair value of intellectual, non-physical assets resulting from business acquisitions and are amortized over their estimated useful life using either an accelerated or straight-line method over a period of eight The balance of intangible assets subject to amortization are as follows: March 31, 2023 December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived intangible assets: Customer related $ 28,226 $ (18,823) $ 28,226 $ (18,437) Trademarks and trade names 150 (14) 150 (12) Other 500 (48) 500 (40) Total definite-lived intangible assets $ 28,876 $ (18,885) $ 28,876 $ (18,489) Estimated amortization expense related to intangible assets for the next five years are as follows: (in thousands) Remainder of 2023 $ 1,185 2024 1,555 2025 1,384 2026 1,153 2027 973 2028 820 Thereafter 2,921 Deferred Charges Deferred charges represent debt issuance costs and are amortized over their estimated useful lives using the straight-line method over a period of four years. The balance of deferred charges subject to amortization are as follows: (in thousands) March 31, 2023 December 31, 2022 Deferred charges, gross $ 398 $ 398 Accumulated amortization of deferred charges (220) (195) Deferred charges, net $ 178 $ 203 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term debt On June 6, 2022, the Company entered into a note payable in the amount of $1.0 million with an interest rate of 2.77% maturing April 1, 2023. The agreement is associated with the financing of the Company's insurance premium in the current year. As of March 31, 2023, the outstanding balance was $0.1 million. Credit Facilities (in thousands) March 31, 2023 December 31, 2022 Revolving line of credit, due January 15, 2025 $ 54,724 $ 67,442 Term loan, due January 15, 2025 3,929 4,107 Total long-term debt 58,653 71,549 Less: Current portion of long-term debt (2,464) (2,464) Long-term debt, less current portion $ 56,189 $ 69,085 During the first quarter of 2023, the Company entered into an Amended and Restated Credit Agreement ("Credit Agreement") with BMO Harris Bank, N.A. ("BMO") to replace LIBOR with the Secured Overnight Funding Rate ("SOFR"). The Credit Agreement provides the Company with a four-year revolving credit facility with up to $150.0 million of borrowing capacity (the "Facility"). The initial borrowing capacity under the Facility totals $110.0 million consisting of a $105.0 million revolving line of credit and a $5.0 million delayed draw term loan. The revolving line of credit includes a $17.5 million machinery and equipment sub-limit which requires quarterly payments of $0.4 million with a balloon payment due upon maturity of the Facility in January 2025. The term loan requires quarterly payments of $0.2 million with a balloon payment due upon maturity of the Facility in January 2025. We have pledged all of our accounts receivable, inventory, and certain machinery and equipment as collateral for the Credit Agreement. Availability under the Credit Agreement is subject to the amount of eligible collateral as determined by the lenders' borrowing base calculations. Amounts outstanding under the revolving line of credit portion of the Facility currently bear interest, at the Company's option, at (a) the Base Rate (as defined in the Credit Agreement) plus 0.50%, or (b) SOFR plus 1.50%. Amounts outstanding under the delayed draw term loan portion of the Facility bear interest at SOFR plus 1.65%. The Facility also provides an unused commitment fee based on the daily used portion of the Facility. The weighted average interest rate per annum was 6.62% a s of March 31, 2023. Pursuant to the Credit Agreement, the Company was required to pledge all of its tangible and intangible properties, including the stock and membership interests of its subsidiaries. The Facility contains covenants requiring the maintenance of a minimum consolidated fixed charge coverage ratio if excess availability falls below the greater of (i) $7.5 million and (ii) 10% of the revolving credit facility (currently $10.5 million). As of March 31, 2023, the Company was in compliance with all financial debt covenants. As of March 31, 2023, the Company had $50.0 million of remaining available capacity under its credit facility. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's lease portfolio relates to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital") that was entered into in 2016 and amended with the American Stainless acquisition in 2019 as well as the sale of land at the Munhall facility in 2020. As of March 31, 2023, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.3 million, or 94% of the total lease liabilities on the consolidated balance sheet. During the three months ended March 31, 2023, the Company entered into new finance lease agreements resulting in an additional $0.3 million of right-of-use assets and lease liabilities. Balance Sheet Presentation Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands): Classification Financial Statement Line Item March 31, 2023 December 31, 2022 Assets Right-of-use assets, operating leases $ 28,871 $ 29,224 Assets Property, plant and equipment 1,617 1,494 Current liabilities Current portion of lease liabilities, operating leases 1,077 1,056 Current liabilities Current portion of lease liabilities, finance leases 273 280 Non-current liabilities Non-current portion of lease liabilities, operating leases 30,628 30,911 Non-current liabilities Non-current portion of lease liabilities, finance leases 1,378 1,242 Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease cost 1 $ 1,000 $ 1,048 Finance lease cost: Amortization of right-of-use assets 78 67 Interest on finance lease liabilities 13 9 Sublease income (91) (33) Total lease cost $ 1,000 $ 1,091 1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of income. Future expected cash receipts from the sublease as of March 31, 2023 are as follows: (in thousands) Sublease Receipts Remainder of 2023 $ 272 2024 370 2025 377 2026 385 2027 392 Thereafter 3,786 Total sublease receipts $ 5,582 Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of March 31, 2023 are as follows: (in thousands) Operating Finance Remainder of 2023 $ 2,736 $ 300 2024 3,667 333 2025 3,687 326 2026 3,703 326 2027 3,765 326 Thereafter 36,152 354 Total undiscounted minimum future lease payments 53,710 1,965 Imputed interest (22,005) (314) Present value of lease liabilities $ 31,705 $ 1,651 Lease Term and Discount Rate Weighted-average remaining lease term March 31, 2023 December 31, 2022 Operating leases 13.37 years 13.61 years Finance leases 5.75 years 6.06 years Weighted-average discount rate Operating leases 8.32 % 8.31 % Finance leases 5.85 % 2.32 % |
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's lease portfolio relates to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital") that was entered into in 2016 and amended with the American Stainless acquisition in 2019 as well as the sale of land at the Munhall facility in 2020. As of March 31, 2023, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.3 million, or 94% of the total lease liabilities on the consolidated balance sheet. During the three months ended March 31, 2023, the Company entered into new finance lease agreements resulting in an additional $0.3 million of right-of-use assets and lease liabilities. Balance Sheet Presentation Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands): Classification Financial Statement Line Item March 31, 2023 December 31, 2022 Assets Right-of-use assets, operating leases $ 28,871 $ 29,224 Assets Property, plant and equipment 1,617 1,494 Current liabilities Current portion of lease liabilities, operating leases 1,077 1,056 Current liabilities Current portion of lease liabilities, finance leases 273 280 Non-current liabilities Non-current portion of lease liabilities, operating leases 30,628 30,911 Non-current liabilities Non-current portion of lease liabilities, finance leases 1,378 1,242 Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease cost 1 $ 1,000 $ 1,048 Finance lease cost: Amortization of right-of-use assets 78 67 Interest on finance lease liabilities 13 9 Sublease income (91) (33) Total lease cost $ 1,000 $ 1,091 1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of income. Future expected cash receipts from the sublease as of March 31, 2023 are as follows: (in thousands) Sublease Receipts Remainder of 2023 $ 272 2024 370 2025 377 2026 385 2027 392 Thereafter 3,786 Total sublease receipts $ 5,582 Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of March 31, 2023 are as follows: (in thousands) Operating Finance Remainder of 2023 $ 2,736 $ 300 2024 3,667 333 2025 3,687 326 2026 3,703 326 2027 3,765 326 Thereafter 36,152 354 Total undiscounted minimum future lease payments 53,710 1,965 Imputed interest (22,005) (314) Present value of lease liabilities $ 31,705 $ 1,651 Lease Term and Discount Rate Weighted-average remaining lease term March 31, 2023 December 31, 2022 Operating leases 13.37 years 13.61 years Finance leases 5.75 years 6.06 years Weighted-average discount rate Operating leases 8.32 % 8.31 % Finance leases 5.85 % 2.32 % |
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's lease portfolio relates to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital") that was entered into in 2016 and amended with the American Stainless acquisition in 2019 as well as the sale of land at the Munhall facility in 2020. As of March 31, 2023, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.3 million, or 94% of the total lease liabilities on the consolidated balance sheet. During the three months ended March 31, 2023, the Company entered into new finance lease agreements resulting in an additional $0.3 million of right-of-use assets and lease liabilities. Balance Sheet Presentation Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands): Classification Financial Statement Line Item March 31, 2023 December 31, 2022 Assets Right-of-use assets, operating leases $ 28,871 $ 29,224 Assets Property, plant and equipment 1,617 1,494 Current liabilities Current portion of lease liabilities, operating leases 1,077 1,056 Current liabilities Current portion of lease liabilities, finance leases 273 280 Non-current liabilities Non-current portion of lease liabilities, operating leases 30,628 30,911 Non-current liabilities Non-current portion of lease liabilities, finance leases 1,378 1,242 Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease cost 1 $ 1,000 $ 1,048 Finance lease cost: Amortization of right-of-use assets 78 67 Interest on finance lease liabilities 13 9 Sublease income (91) (33) Total lease cost $ 1,000 $ 1,091 1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of income. Future expected cash receipts from the sublease as of March 31, 2023 are as follows: (in thousands) Sublease Receipts Remainder of 2023 $ 272 2024 370 2025 377 2026 385 2027 392 Thereafter 3,786 Total sublease receipts $ 5,582 Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of March 31, 2023 are as follows: (in thousands) Operating Finance Remainder of 2023 $ 2,736 $ 300 2024 3,667 333 2025 3,687 326 2026 3,703 326 2027 3,765 326 Thereafter 36,152 354 Total undiscounted minimum future lease payments 53,710 1,965 Imputed interest (22,005) (314) Present value of lease liabilities $ 31,705 $ 1,651 Lease Term and Discount Rate Weighted-average remaining lease term March 31, 2023 December 31, 2022 Operating leases 13.37 years 13.61 years Finance leases 5.75 years 6.06 years Weighted-average discount rate Operating leases 8.32 % 8.31 % Finance leases 5.85 % 2.32 % |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share Repurchase Program On December 20, 2022, the Board of Directors re-authorized the Company's share repurchase program. The previous share repurchase program had a term of 24 months and was set to expire on February 17, 2023. The share repurchase program allows for repurchase of up to 790,383 shares of the Company's outstanding common stock and extends to February 17, 2025. The shares will be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, depending on market conditions. Under the program, the purchases will be funded from available working capital, and the repurchased shares will be returned to the status of authorized, but unissued shares of common stock or held in treasury. There is no guarantee as to the exact number of shares that will be repurchased by the Company, and the Company may discontinue purchases at any time that management determines additional purchases are not warranted. As of March 31, 2023, the Company has 647,666 shares of its share repurchase authorization remaining. Shares repurchased for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Number of shares repurchased 32,313 — Average price per share $ 10.11 $ — Total cost of shares repurchased $ 327,521 $ — |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator: Net income (loss) $ (5,199) $ 10,260 Denominator: Denominator for basic earnings (loss) per share - weighted average shares 10,148 10,209 Effect of dilutive securities: Employee stock options and stock grants — 111 Denominator for diluted earnings (loss) per share - weighted average shares 10,148 10,320 Net income (loss) per share: Basic $ (0.51) $ 1.00 Diluted $ (0.51) $ 0.99 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The Company is no longer subject to U.S. federal examinations for years before 2019 or state examinations for years before 2018. During the three months ended March 31, 2023 and 2022, the Company did not identify nor reserve for any unrecognized tax benefits. Our income tax provision (benefit) and overall effective tax rates for the periods presented are as follows: Three Months Ended March 31, (in thousands) 2023 2022 Income tax provision (benefit) $ (1,407) $ 2,589 Effective income tax rate 21.3 % 20.2 % The effective tax rate was 21.3% and 20.2% for the three months ended March 31, 2023 and 2022, respectively. The March 31, 2023, effective tax rate was higher than the U.S. statutory rate of 21.0% primarily due to the effects of discrete tax charges related to stock based compensation and an increase in pre-tax book losses. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In October 2021, the Company acquired DanChem Technologies, Inc. ("DanChem"), a specialty chemical manufacturer based in Virginia. In June of 2020, DanChem received a demand letter from Henkel US Operations Corporation (“Henkel”), a former customer, asserting various claims for breach of contract alleging that product supplied by DanChem under four (4) purchase orders in 2018 and 2019 were defective and/or non-conforming and seeking approximately $315,000 in damages. DanChem responded in August 2020 disputing the claims and denying wrongdoing. Henkel was silent almost two years and then, in August 2022, sent another demand letter to DanChem asserting similar, if not identical claims, but now seeking alleged damages of approximately $3 million (with the main difference between the two demands being Henkel’s new claims for lost profits and other consequential damages). Henkel filed a lawsuit against DanChem in Connecticut state court in October 2022 seeking its newly alleged damages of approximately $3 million. Given the various amounts alleged by Henkel, the early stages of the proceedings, and the fact that DanChem denies liability under the purported legal theory for the claims, we are unable to estimate the reasonably possible loss or range of loss, if any, arising from this matter. In addition, from time to time, we are involved in various other legal proceedings arising from the normal course of business activities. We are not presently a party to any other such litigation the outcome of which, we believe, if determined adversely to us, would individually, or taken together, have a material adverse effect on our business, operating results, cash flows, or financial condition. Defending such proceedings is costly and can impose a significant burden on management and employees. We may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. |
Industry Segments
Industry Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Industry Segments | Industry Segments Ascent Industries Co. has two reportable segments: Tubular Products and Specialty Chemicals. The Tubular Products segment includes the operating results of the Company’s plants involved in the production and distribution of stainless steel, galvanized steel and seamless carbon pipe and tube. The Tubular Products segment serves markets through pipe and tube and customers in the appliance, architectural, automotive and commercial transportation, brewery, chemical, petrochemical, pulp and paper, mining, power generation (including nuclear), water and waste-water treatment, liquid natural gas ("LNG"), food processing, pharmaceutical, oil and gas and other industries. On January 1, 2023, the Company changed the grouping of certain immaterial revenue and expenses associated with the ceased Palmer operations. As a result, certain prior period Tubular Products segment results have been reclassified to All Other to be comparable to the current period's presentation. The Specialty Chemicals segment includes the operating results of the Company’s plants involved in the production of specialty chemicals. The Specialty Chemicals segment produces products for the pulp and paper, coatings, adhesives, sealants and elastomers (CASE), textile, automotive, household, industrial and institutional ("HII"), agricultural, water and waste-water treatment, construction, oil and gas and other industries. The chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measures being operating income and Adjusted earnings (loss) before interest, income taxes, depreciation and amortization. Adjusted earnings (loss) before interest, income taxes, depreciation and amortization excludes certain items that management believes are not indicative of future results. The accounting principles applied at the operating segment level are the same as those applied at the consolidated financial statement level. Intersegment sales and transfers are eliminated at the corporate consolidation level. The following table summarizes certain information regarding segments of the Company's operations: Three Months Ended March 31, (in thousands) 2023 2022 Net sales Tubular Products $ 58,653 $ 88,383 Specialty Chemicals 23,749 27,721 All Other 50 114 $ 82,452 $ 116,218 Operating income (loss) Tubular Products $ (2,504) $ 14,574 Specialty Chemicals 1,352 2,387 All Other (479) (82) Corporate Unallocated corporate expenses (3,704) (3,029) Acquisition costs and other (259) (531) Earn-out adjustments — (102) Total Corporate (3,963) (3,662) Operating income (loss) (5,594) 13,217 Interest expense 1,107 403 Other, net (95) (35) Income (loss) before income taxes $ (6,606) $ 12,849 As of (in thousands) March 31, 2023 December 31, 2022 Identifiable assets Tubular Products $ 145,416 $ 158,664 Specialty Chemicals 70,406 72,990 Corporate 39,210 37,389 $ 255,032 $ 269,043 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements and notes to the unaudited condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The unaudited condensed consolidated financial statements, in the opinion of management, contain all normal recurring adjustments necessary to present a fair statement of the condensed consolidated balance sheets as of March 31, 2023, the statements of income and shareholders’ equity for the three months ended March 31, 2023 and 2022, and the statements of cash flows for the three months ended March 31, 2023 and 2022. The December 31, 2022 condensed consolidated balance sheet was derived from the audited financial statements. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (the "Annual Report"). The financial results for the interim periods may not be indicative of the financial results for the entire year as our future assessment of our current expectations could result in material impacts to our consolidated financial statements in future reporting periods. |
Use of Estimates | Use of Estimates The preparation of the Company's financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses, and related disclosures of contingent assets and liabilities. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment; intangible assets; the fair value of assets or liabilities acquired in a business combination; valuation allowances for receivables, inventories and deferred income tax assets and liabilities; environmental liabilities; liabilities for potential tax deficiencies; and, potential litigation claims and settlements. The Company bases these estimates on historical results and various other assumptions believed to be reasonable, all of which form the basis for making estimates concerning the carrying value of assets and liabilities that are readily available from other sources. Actual results may differ from these estimates. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation, including the reclassification of immaterial revenue and expenses related to the Palmer business within the Company's reportable segments. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Recently Adopted On March 31, 2023, the Company adopted ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting." |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 - Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date. Level 2 - Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using model-based techniques, including option pricing models, discounted cash flow models, probability weighted models, and Monte Carlo simulations. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Product Group | The following table presents the Company's revenues, disaggregated by product group: Three Months Ended March 31, (in thousands) 2023 2022 Fiberglass and steel liquid storage tanks and separation equipment $ 50 $ 114 Heavy wall seamless carbon steel pipe and tube 12,387 12,373 Stainless steel pipe and tube 44,460 62,239 Galvanized pipe and tube 1,806 13,771 Specialty Chemicals 23,749 27,721 Net sales $ 82,452 $ 116,218 |
Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table represents the Company's revenue recognized at a point- in-time and over-time: Three Months Ended March 31, (in thousands) 2023 2022 Point-in-time $ 77,029 $ 109,003 Over-time $ 5,423 $ 7,215 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Held for Sale | The assets classified as held for sale as are as follows: (in thousands) March 31, 2023 December 31, 2022 Inventory, net $ — $ 198 Property, plant and equipment, net — 182 Assets held for sale $ — $ 380 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | The components of inventories are as follows: (in thousands) March 31, 2023 December 31, 2022 Raw materials $ 49,862 $ 57,475 Work-in-process 22,786 23,136 Finished goods 32,030 37,549 104,678 118,160 Less: inventory reserves (4,886) (3,708) Inventories, net $ 99,792 $ 114,452 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: (in thousands) March 31, 2023 December 31, 2022 Land $ 723 $ 723 Leasehold improvements 4,203 4,114 Buildings 1,534 1,534 Machinery, fixtures and equipment 114,780 113,413 Construction-in-progress 2,866 3,270 124,106 123,054 Less: accumulated depreciation and amortization (82,661) (80,708) Property, plant and equipment, net $ 41,445 $ 42,346 The following table sets forth depreciation expense related to property, plant and equipment: Three Months Ended March 31, (in thousands) 2023 2022 Cost of sales $ 1,917 $ 2,054 Selling, general and administrative 74 62 Total depreciation $ 1,991 $ 2,116 |
Goodwill, Intangible Assets a_2
Goodwill, Intangible Assets and Deferred Charges (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | The balance of intangible assets subject to amortization are as follows: March 31, 2023 December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived intangible assets: Customer related $ 28,226 $ (18,823) $ 28,226 $ (18,437) Trademarks and trade names 150 (14) 150 (12) Other 500 (48) 500 (40) Total definite-lived intangible assets $ 28,876 $ (18,885) $ 28,876 $ (18,489) |
Schedule of Estimated Amortization Expense | Estimated amortization expense related to intangible assets for the next five years are as follows: (in thousands) Remainder of 2023 $ 1,185 2024 1,555 2025 1,384 2026 1,153 2027 973 2028 820 Thereafter 2,921 |
Schedule of Deferred Charges | The balance of deferred charges subject to amortization are as follows: (in thousands) March 31, 2023 December 31, 2022 Deferred charges, gross $ 398 $ 398 Accumulated amortization of deferred charges (220) (195) Deferred charges, net $ 178 $ 203 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | (in thousands) March 31, 2023 December 31, 2022 Revolving line of credit, due January 15, 2025 $ 54,724 $ 67,442 Term loan, due January 15, 2025 3,929 4,107 Total long-term debt 58,653 71,549 Less: Current portion of long-term debt (2,464) (2,464) Long-term debt, less current portion $ 56,189 $ 69,085 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating and Finance Leases Recorded in Consolidated Balance Sheet | Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands): Classification Financial Statement Line Item March 31, 2023 December 31, 2022 Assets Right-of-use assets, operating leases $ 28,871 $ 29,224 Assets Property, plant and equipment 1,617 1,494 Current liabilities Current portion of lease liabilities, operating leases 1,077 1,056 Current liabilities Current portion of lease liabilities, finance leases 273 280 Non-current liabilities Non-current portion of lease liabilities, operating leases 30,628 30,911 Non-current liabilities Non-current portion of lease liabilities, finance leases 1,378 1,242 |
Schedule of Operating and Finance Leases Discount Rates, Total Lease Cost and Weighted Average Remaining Lease Terms | Individual components of the total lease cost incurred by the Company are as follows: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease cost 1 $ 1,000 $ 1,048 Finance lease cost: Amortization of right-of-use assets 78 67 Interest on finance lease liabilities 13 9 Sublease income (91) (33) Total lease cost $ 1,000 $ 1,091 1 Includes short term leases, which are immaterial Weighted-average remaining lease term March 31, 2023 December 31, 2022 Operating leases 13.37 years 13.61 years Finance leases 5.75 years 6.06 years Weighted-average discount rate Operating leases 8.32 % 8.31 % Finance leases 5.85 % 2.32 % |
Schedule of Maturities For Sub Leases | Future expected cash receipts from the sublease as of March 31, 2023 are as follows: (in thousands) Sublease Receipts Remainder of 2023 $ 272 2024 370 2025 377 2026 385 2027 392 Thereafter 3,786 Total sublease receipts $ 5,582 |
Schedule of Maturities For Operating Leases | The amounts of undiscounted future minimum lease payments under leases as of March 31, 2023 are as follows: (in thousands) Operating Finance Remainder of 2023 $ 2,736 $ 300 2024 3,667 333 2025 3,687 326 2026 3,703 326 2027 3,765 326 Thereafter 36,152 354 Total undiscounted minimum future lease payments 53,710 1,965 Imputed interest (22,005) (314) Present value of lease liabilities $ 31,705 $ 1,651 |
Schedule of Maturities For Finance Leases | The amounts of undiscounted future minimum lease payments under leases as of March 31, 2023 are as follows: (in thousands) Operating Finance Remainder of 2023 $ 2,736 $ 300 2024 3,667 333 2025 3,687 326 2026 3,703 326 2027 3,765 326 Thereafter 36,152 354 Total undiscounted minimum future lease payments 53,710 1,965 Imputed interest (22,005) (314) Present value of lease liabilities $ 31,705 $ 1,651 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | Shares repurchased for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Number of shares repurchased 32,313 — Average price per share $ 10.11 $ — Total cost of shares repurchased $ 327,521 $ — |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of the Computation of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator: Net income (loss) $ (5,199) $ 10,260 Denominator: Denominator for basic earnings (loss) per share - weighted average shares 10,148 10,209 Effect of dilutive securities: Employee stock options and stock grants — 111 Denominator for diluted earnings (loss) per share - weighted average shares 10,148 10,320 Net income (loss) per share: Basic $ (0.51) $ 1.00 Diluted $ (0.51) $ 0.99 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes and Effective Tax Rates | Our income tax provision (benefit) and overall effective tax rates for the periods presented are as follows: Three Months Ended March 31, (in thousands) 2023 2022 Income tax provision (benefit) $ (1,407) $ 2,589 Effective income tax rate 21.3 % 20.2 % |
Industry Segments (Tables)
Industry Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table summarizes certain information regarding segments of the Company's operations: Three Months Ended March 31, (in thousands) 2023 2022 Net sales Tubular Products $ 58,653 $ 88,383 Specialty Chemicals 23,749 27,721 All Other 50 114 $ 82,452 $ 116,218 Operating income (loss) Tubular Products $ (2,504) $ 14,574 Specialty Chemicals 1,352 2,387 All Other (479) (82) Corporate Unallocated corporate expenses (3,704) (3,029) Acquisition costs and other (259) (531) Earn-out adjustments — (102) Total Corporate (3,963) (3,662) Operating income (loss) (5,594) 13,217 Interest expense 1,107 403 Other, net (95) (35) Income (loss) before income taxes $ (6,606) $ 12,849 As of (in thousands) March 31, 2023 December 31, 2022 Identifiable assets Tubular Products $ 145,416 $ 158,664 Specialty Chemicals 70,406 72,990 Corporate 39,210 37,389 $ 255,032 $ 269,043 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregated Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 82,452 | $ 116,218 |
Fiberglass and steel liquid storage tanks and separation equipment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 50 | 114 |
Heavy wall seamless carbon steel pipe and tube | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 12,387 | 12,373 |
Stainless steel pipe and tube | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 44,460 | 62,239 |
Galvanized pipe and tube | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,806 | 13,771 |
Specialty Chemicals | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 23,749 | $ 27,721 |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Recognized at a Point- in-Time and Over-Time (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 82,452 | $ 116,218 |
Point-in-time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 77,029 | 109,003 |
Over-time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5,423 | $ 7,215 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets Held For Sale (Details) - Discontinued Operations, Held-for-sale - Palmer Facility - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventory, net | $ 0 | $ 198 |
Property, plant and equipment, net | 0 | 182 |
Assets held for sale | $ 0 | $ 380 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Annual base rent | $ 0.4 |
Percentage annual increase in base rent (as a percent) | 2% |
Security deposit | $ 0.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 49,862 | $ 57,475 |
Work-in-process | 22,786 | 23,136 |
Finished goods | 32,030 | 37,549 |
Inventory, gross | 104,678 | 118,160 |
Less: inventory reserves | (4,886) | (3,708) |
Inventories, net | $ 99,792 | $ 114,452 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | $ 124,106 | $ 123,054 | |
Less: accumulated depreciation and amortization | (82,661) | (80,708) | |
Property, plant and equipment, net | 41,445 | 42,346 | |
Total depreciation | 1,991 | $ 2,116 | |
Cost of sales | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation | 1,917 | 2,054 | |
Selling, general and administrative | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation | 74 | $ 62 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | 723 | 723 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | 4,203 | 4,114 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | 1,534 | 1,534 | |
Machinery, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | 114,780 | 113,413 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, gross | $ 2,866 | $ 3,270 |
Goodwill, Intangible Assets a_3
Goodwill, Intangible Assets and Deferred Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 11,389 | $ 11,389 |
Deferred charges, amortization period (in years) | 4 years | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life (in years) | 8 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life (in years) | 15 years |
Goodwill, Intangible Assets a_4
Goodwill, Intangible Assets and Deferred Charges - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 28,876 | $ 28,876 |
Accumulated Amortization | (18,885) | (18,489) |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 28,226 | 28,226 |
Accumulated Amortization | (18,823) | (18,437) |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 150 | 150 |
Accumulated Amortization | (14) | (12) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 500 | 500 |
Accumulated Amortization | $ (48) | $ (40) |
Goodwill, Intangible Assets a_5
Goodwill, Intangible Assets and Deferred Charges - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2023 | $ 1,185 |
2024 | 1,555 |
2025 | 1,384 |
2026 | 1,153 |
2027 | 973 |
2028 | 820 |
Thereafter | $ 2,921 |
Goodwill, Intangible Assets a_6
Goodwill, Intangible Assets and Deferred Charges - Schedule of Deferred Charges (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Deferred charges, gross | $ 398 | $ 398 |
Accumulated amortization of deferred charges | (220) | (195) |
Deferred charges, net | $ 178 | $ 203 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jan. 15, 2021 | Mar. 31, 2023 | Jun. 06, 2022 |
Notes Payable to Banks | |||
Line of Credit Facility [Line Items] | |||
Principal amount of debt | $ 1,000,000 | ||
Interest rate (as a percent) | 2.77% | ||
Outstanding balance | $ 100,000 | ||
Revolving line of credit, due January 15, 2025 | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Initial borrowing capacity | $ 110,000,000 | ||
Weighted average interest rate (as a percent) | 6.62% | ||
Revolving line of credit, due January 15, 2025 | Delayed Draw Term Loan | |||
Line of Credit Facility [Line Items] | |||
Initial borrowing capacity | $ 5,000,000 | ||
Revolving line of credit, due January 15, 2025 | Delayed Draw Term Loan | SOFR | |||
Line of Credit Facility [Line Items] | |||
Basis spread (as a percent) | 1.65% | ||
Revolving line of credit, due January 15, 2025 | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, periodic payment | $ 200,000 | ||
Revolving Credit Facility | Revolving line of credit, due January 15, 2025 | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Debt term (in years) | 4 years | ||
Maximum borrowing capacity | $ 150,000,000 | ||
Initial borrowing capacity | $ 105,000,000 | $ 10,500,000 | |
Minimum amount of excess availability required to be had | $ 7,500,000 | ||
Percentage of minimum amount of excess availability required to be had (as a percent) | 10% | ||
Remaining borrowing capacity | $ 50,000,000 | ||
Revolving Credit Facility | Revolving line of credit, due January 15, 2025 | Line of Credit | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread (as a percent) | 0.50% | ||
Revolving Credit Facility | Revolving line of credit, due January 15, 2025 | Line of Credit | SOFR | |||
Line of Credit Facility [Line Items] | |||
Basis spread (as a percent) | 1.50% | ||
Revolving Credit Facility | Revolving line of credit, due January 15, 2025 | Machinery and Equipment Sub Limit | |||
Line of Credit Facility [Line Items] | |||
Initial borrowing capacity | $ 17,500,000 | ||
Line of credit quarterly payments | $ 400,000 |
Debt - Summary of Long Term Deb
Debt - Summary of Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 58,653 | $ 71,549 |
Less: Current portion of long-term debt | (2,464) | (2,464) |
Long-term debt, less current portion | 56,189 | 69,085 |
Revolving Credit Facility | Revolving line of credit, due January 15, 2025 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 54,724 | 67,442 |
Secured Debt | Term loan, due January 15, 2025 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 3,929 | $ 4,107 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Leases [Abstract] | |
Operating lease liability related to sale leaseback transactions | $ 31.3 |
Sale leaseback liabilities as a percentage of total operating lease liabilities | 94% |
Right-of-use asset obtained in exchange for operating lease liability | $ 0.3 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Leases Recorded in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Right-of-use assets, operating leases | $ 28,871 | $ 29,224 |
Property, plant and equipment | 1,617 | 1,494 |
Current portion of lease liabilities, operating leases | 1,077 | 1,056 |
Current portion of lease liabilities, finance leases | 273 | 280 |
Non-current portion of lease liabilities, operating leases | 30,628 | 30,911 |
Non-current portion of lease liabilities, finance leases | $ 1,378 | $ 1,242 |
Leases - Schedule of Total Leas
Leases - Schedule of Total Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,000 | $ 1,048 |
Finance lease cost: | ||
Amortization of right-of-use assets | 78 | 67 |
Interest on finance lease liabilities | 13 | 9 |
Sublease income | (91) | (33) |
Total lease cost | $ 1,000 | $ 1,091 |
Leases - Future Expected Cash R
Leases - Future Expected Cash Receipts From Sublease (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Sublease Receipts [Abstract] | |
Remainder of 2023 | $ 272 |
2024 | 370 |
2025 | 377 |
2026 | 385 |
2027 | 392 |
Thereafter | 3,786 |
Total sublease receipts | $ 5,582 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities After Adoption of 842 (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Operating | |
Remainder of 2023 | $ 2,736 |
2024 | 3,667 |
2025 | 3,687 |
2026 | 3,703 |
2027 | 3,765 |
Thereafter | 36,152 |
Total undiscounted minimum future lease payments | 53,710 |
Imputed interest | (22,005) |
Present value of lease liabilities | 31,705 |
Finance | |
Remainder of 2023 | 300 |
2024 | 333 |
2025 | 326 |
2026 | 326 |
2027 | 326 |
Thereafter | 354 |
Total undiscounted minimum future lease payments | 1,965 |
Imputed interest | (314) |
Present value of lease liabilities | $ 1,651 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term | ||
Operating leases | 13 years 4 months 13 days | 13 years 7 months 9 days |
Finance leases | 5 years 9 months | 6 years 21 days |
Weighted-average discount rate | ||
Operating leases | 8.32% | 8.31% |
Finance leases | 5.85% | 2.32% |
Shareholders' Equity - Stock Re
Shareholders' Equity - Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | |||
Dec. 20, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Feb. 17, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased (in shares) | 32,313 | 0 | ||
Average price per share (in dollars per share) | $ 10.11 | $ 0 | ||
Total cost of shares repurchased | $ 327,521 | $ 0 | ||
First Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Period for shares to be repurchased (in months) | 24 months | |||
Amended Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 647,666 | 790,383 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income (loss) | $ (5,199) | $ 10,260 |
Denominator: | ||
Denominator for basic earnings per share - weighted average shares (in shares) | 10,148 | 10,209 |
Employee stock options and stock grants (in shares) | 0 | 111 |
Denominator for diluted earnings per share - weighted average shares (in shares) | 10,148 | 10,320 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ (0.51) | $ 1 |
Diluted (in dollars per share) | $ (0.51) | $ 0.99 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 100 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision (benefit) | $ (1,407) | $ 2,589 |
Effective income tax rate | 21.30% | 20.20% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | 24 Months Ended | ||
Oct. 31, 2022 USD ($) | Aug. 31, 2022 USD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2019 order | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of purchase order | order | 4 | |||
Damages sought value | $ | $ 3,000 | $ 3,000 | $ 315 | |
Period of silent after receiving demand letter | 2 years |
Industry Segments - Narrative (
Industry Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reporting units | 2 |
Industry Segments - Schedule of
Industry Segments - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 82,452 | $ 116,218 | |
Operating income (loss) | (5,594) | 13,217 | |
Unallocated corporate expenses | 9,553 | 8,646 | |
Acquisition costs and other | 333 | 531 | |
Earn-out adjustments | 0 | 102 | |
Interest expense | 1,107 | 403 | |
Other, net | (95) | (35) | |
Income (loss) before income taxes | (6,606) | 12,849 | |
Identifiable assets | 255,032 | $ 269,043 | |
Tubular Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 58,653 | 88,383 | |
Specialty Chemicals | |||
Segment Reporting Information [Line Items] | |||
Net sales | 23,749 | 27,721 | |
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 50 | 114 | |
Operating segment | Tubular Products | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (2,504) | 14,574 | |
Identifiable assets | 145,416 | 158,664 | |
Operating segment | Specialty Chemicals | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 1,352 | 2,387 | |
Identifiable assets | 70,406 | 72,990 | |
Operating segment | Other Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (479) | (82) | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (3,963) | (3,662) | |
Unallocated corporate expenses | (3,704) | (3,029) | |
Acquisition costs and other | (259) | (531) | |
Earn-out adjustments | 0 | $ (102) | |
Identifiable assets | $ 39,210 | $ 37,389 |